****

## Movie Nights

As you know, pre-recorded home videocassettes or videotapes, those commonly available in the association’s video library, are intended for personal, home use only.  Viewing outside of the home, such as in common areas (i.e. recreation club, childcare facility, or association administrative offices, etc.) requires a license as per U.S. copyright law.  In December 2000, the Office of Commissary (CR) and Recreation Affairs signed an agreement with the Motion Picture Licensing Corporation (MPLC) providing a blanket license for all employee associations.  The license is renewed annually (as approved by the Central Fund Board) at no cost to the individual employee association.  

If you are not already taking advantage of the license and would like to do so, here is what you should know.

Associations can use public showings of videos to  generate revenue for the association and to provide entertainment for its members.

An   admission  fee  cannot  be  charged.  However, donations may be accepted and concession sales (i.e. soda, popcorn, snacks, candy, etc.) are a good source of revenue.  You may consider “theme nights” around a particular movie combined with dinner and/or dancing.  For example, you might have a “scarefest” by 

combining thriller movies with a masquerade dance.  Here, associations may charge a ticket price for the event.

There are some limitations in the agreement.  

First, associations are limited to titles from motion picture companies named in the agreement.  Specific titles which may be publicly performed under the agreement are motion pictures which have been produced and/or distributed by the following motion picture companies:

· Avid Home Video

· American Portrait Films

· Anime 18

· Arena Home Video

· Artisan Entertainment

· Best Film & Video

· Bridgestone Multimedia Group

· Buena Vista Pictures

· Central Park Media

· Family Entertainment Library

· Family Home Entertainment

· Gateway Films

· Hanna-Barbera

· Hollywood Pictures

· International Film Forum

· Kidmark Entertainment

· LIVE Entertainment

· Learning Corporation of America

· Lorimar Telepictures

· McGraw-Hill

· Metro-Goldwyn-Mayer

(pre-1986 title)

·  New World Pictures

· PPI Entertainment

· Praise Home Video

· RKO Pictures

· Scholastic Entertainment

· Showdown Home Video

· Solar Home Video

· Sony Picture Classics

· Touchstone Pictures

· Trimark Pictures

· Turner Home Entertainment

· US Manga Corps

· Vestron Video

· Vidmark Entertainment

· Vision Video

· Walt Disney Pictures

· Warner Bros.

· Xenon Home Video

Second, all videocassettes and videodiscs must be obtained from legitimate sources (i.e. no pirated videos may be shown publicly).  Legitimate sources include, but are not limited to, those contained in the CR Supplier Directory.

Third, videocassettes and videodiscs may not be duplicated, edited, or otherwise modified.  

A revised charter is not required to implement this service.  However, we do ask that employee associations report this service in Post Profiles as part of the annual questionnaire process.

The umbrella license agreement applies only to employee associations and does not cover the Community Liaison Office or any other entity at post.

Associations that have previously held a license with MPLC, should have received a pro-rated refund by now.  If not, please contact your MPLC representative.

Questions regarding the blanket agreement may be directed to the CR Operations Team via email at foodandfun@state.gov.

Enjoy the movie!

## NOT-FOR-PROFIT?

A number of association Board members have adopted the misconception that association profits must be kept below a given percentage of sales.    

As you may know, employee associations are chartered as not-for-profit entities.  Not-for-profit entities, much the same as for-profit entities, must at a minimum break even in order to stay in business.  Yes, the employee association is a business.  In keeping with this philosophy, associations must strive to operate using sound business practices while providing goods and services to its members at a fair price.  Pricing must allow for a profit margin that enables the association to maintain solvency and ensure that its activities continue to exist for future members.  Pricing may also include an effort to improve association activities.  This is what is meant by “Not-for-profit” AKA “Non-profit”.  All profits are reinvested into the association to improve services.  Such improvements may include the expansion of current services, the introduction of new services, or capital improvements (such as reserves for replacement of equipment).

As you can see, there are many purposes for which derived profits may be used.  As such, it is preferable to let the individual association determine its needs and act in the best interest of the membership.  However, if an association proves extremely profitable or has accumulated significant retained earnings, CR will ask for a financial plan regarding the future use of funds deemed excessive.  CR's review of management plans ensures that associations continue to operate for the morale and welfare of their members.  

If you have questions regarding the association's not-for-profit status, contact the Accounting Team at foodandfun@state.gov.

###### This Just In...

We’ve changed the way we do business!  We think you’ll like the new personal attention you’ll be receiving.  Each employee association has now been assigned its own contact team within the Office of Commissary and Recreation Affairs (CR).  Your CR team consists of an Operations Officer and an Accountant.  Contact your CR Accountant with financial and accounting related questions.  Your CR Operations Officer should be able to assist you with all other inquiries.  The charts below list the teams assigned to each employee association alphabetically by region and city.  Contact the staff by phone (+1-202-663-1330) fax (+1-202-663-1329) or the email addresses provided at the end of the listings.

Please contact individual team members at the following email addresses:

**Operations Team**

Team Leader:  Annie Cocchiaro CocchiaroAR@state.gov

Operations Officer:  Christy Chesnutt ChesnuttCH@state.gov

Operations Officer: Rob Whetsel WhetselRM@state.gov

**Accounting Team**

Team Leader:  Cyndi Burleigh BurleighCT@state.gov

Accountant:Greg Moore MooreGT@state.gov

Accountant:  Anthony Walker WalkerAN@state.gov

You may also contact the staff via our central email box (foodandfun@state.gov).  Send us your comments and questions regarding the above assignments.  We look forward to hearing from you!

***Reminder....***

Association prepared financial statements for the period January 1 – June 30, 2003 are due in CR by August 15, 2003.  If you anticipate a delay, please contact your CR accountant.  

*In the next issue of The CRonicle*, we will serve up a feature article on frequently asked questions.  The next issue will be published in September.  Until then, that’s all folks! 

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